Lender sues to foreclose on former Ryan Aviation headquarters

08/01/2012 5:00 AM

08/01/2012 5:17 PM

The main lender for the former Ryan Aviation headquarters in downtown Wichita is seeking to foreclose on the building.

Dougherty Funding of Minneapolis, Minn., said in the foreclosure lawsuit filed July 19 that Rubloff Wichita LLC failed to pay off its loan, or refinance it, when it became due on April 15. Dougherty is seeking $4.8 million, plus interest, fees and unpaid taxes.

Ryan Aviation sold the building at the corner of Second and Main streets to Rockford, Ill.-based Rubloff Jet Express in August 2004. The city of Wichita issued $3.5 million in industrial revenue bonds in 2004 after the company promised to expand in Wichita. Rubloff technically leased the building, but acted as owner and was its mortgage holder, said Jack Marvin, the attorney representing Dougherty Funding.

In 2006, Ryan Aviation left Wichita The building’s tenants now are Level 3 Communications and Wichita Technology Center.

Ryan Aviation declared bankruptcy in March, according to court documents, and got permission from the court in June to reject any lease interest in the building.

Marvin said he wants ownership of the bonds used as loan collateral to gain control of the building. He has asked for the court to allow the Martens Cos. to manage the building.

A message seeking comment from Rubloff Development was not returned Wednesday.

Wichita Top Jobs

View All Top Jobs

Join the Discussion

The Wichita Eagle is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

Terms of Service